Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [6][36] - Loans grew by over $650 million and deposits increased by over $1.1 billion, with a net interest margin of 3.56%, which is five basis points higher than the previous quarter [7][11] - Charge-offs for the quarter decreased to 11 basis points, and the provision for credit losses was $24 million, consistent with prior quarters [8][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, while deposit growth was approximately 8% on an annualized basis [11] - Non-interest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [17] - Non-interest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [18][19] Market Data and Key Metrics Changes - Non-interest bearing deposits represented 21% of total deposits at the end of the quarter, remaining stable over the last five quarters [12] - The company anticipates strong loan growth in the second quarter, particularly in the premium finance segment, which is expected to grow close to $1 billion [26] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio, with a CET1 ratio of slightly over 10% [36] - The management emphasized the importance of differentiated client service and maintaining a strong local presence to navigate economic uncertainties [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, clients remain generally encouraged about the local economy and their ability to perform normally [45] - The company is focused on proactive communication with clients to address concerns related to economic conditions, tariffs, and funding cuts [34][46] Other Important Information - The company received 14 Coalition Greenwich Awards and was recognized for best customer service in Illinois for the fourth consecutive year [36] - The tangible book value per common share increased to $78.83 compared to $75.39 in the prior quarter [23] Q&A Session Summary Question: How prevalent is uncertainty from borrowers and its impact on growth outlook? - Management acknowledged that borrowers are cautious but remain generally encouraged about the local economy, maintaining their loan growth expectations [45][46] Question: Can you walk us through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented a qualitative overlay due to spikes in credit spreads and equity market factors at the end of the quarter [52][69] Question: Any changes in competitive pricing on new home production? - Management noted that competition remains rational, with slight declines in rates from competitors, but they expect to balance this with strong loan growth [58][60] Question: How is new client acquisition in wealth management going? - The company is transitioning to a new platform that is expected to improve capabilities for financial advisors, which should enhance growth in the wealth management business [72][73] Question: Thoughts on M&A and growth through acquisition? - Management indicated ongoing M&A conversations and expressed confidence in their ability to pursue attractive acquisition opportunities [76] Question: How should we think about the source of deposit growth going forward? - Management expects to continue growing deposits to match loan growth, with a stable mix of commercial and consumer relationships [82][84]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [5] - The net interest margin increased to 3.56%, up five basis points from the previous quarter, reflecting disciplined loan and deposit pricing [6][11] - Loans grew by over $650 million and deposits increased by over $1.1 billion during the quarter [5][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, consistent with prior guidance, while deposit growth was approximately 8% on an annualized basis [9][10] - Noninterest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [13] - Noninterest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [14] Market Data and Key Metrics Changes - Nonperforming loans (NPLs) as a percentage of total loans decreased slightly from 36 basis points to 35 basis points, indicating stable credit quality [19] - Charge-offs for the quarter were $12.6 million or 11 basis points, down from $15.9 million or 13 basis points in the previous quarter [19] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio, with the CET1 ratio ending the quarter at slightly over 10% [24] - The management emphasized a focus on differentiated client service and maintaining a strong competitive position in the market [26][27] Management's Comments on Operating Environment and Future Outlook - Management noted a fair amount of uncertainty in the market, which causes clients to pause before making major investments, but they remain optimistic about loan growth in the second quarter [26][27] - The company is committed to proactive engagement with clients to navigate periods of uncertainty and believes that its strong underwriting standards will mitigate potential impacts from economic challenges [22][23] Other Important Information - The company received 14 Coalition Greenwich Awards for performance with commercial clients and was recognized for best customer service in Illinois for the fourth consecutive year [25] - The management highlighted the importance of client feedback in improving service levels and maintaining competitive advantage [25] Q&A Session Summary Question: How prevalent is uncertainty from borrowers, and is it impacting growth outlook? - Management acknowledged that borrowers are cautious and pausing due to uncertainty but remain encouraged about the local economy and do not expect to change loan growth expectations [32][34] Question: Can you walk through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented an uncertainty overlay due to spikes in credit spreads and equity market factors at the end of the quarter [36][38] Question: How should we think about the source of deposit growth going forward? - The company plans to grow deposits to match loan growth, maintaining a stable mix and focusing on adding new clients [72][74]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [6][36] - Loans grew by over $650 million and deposits increased by over $1.1 billion, with a net interest margin of 3.56%, which is five basis points higher than the previous quarter [7][11] - Charge-offs for the quarter decreased to 11 basis points, and the provision for credit losses was $24 million, consistent with prior quarters [8][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, while deposit growth was approximately 8% on an annualized basis [11] - Non-interest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [17] - Non-interest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [18][19] Market Data and Key Metrics Changes - Non-interest bearing deposits represented 21% of total deposits at the end of the quarter, remaining stable over the last five quarters [12] - The company anticipates strong loan growth in the second quarter, particularly in the premium finance segment, which is expected to grow close to $1 billion [26] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio steadily [36] - The management emphasized a focus on differentiated client service and maintaining a stable net interest margin despite economic uncertainties [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, clients remain generally encouraged about the local economy and their ability to perform normally [45] - The company is committed to proactive engagement with clients to navigate periods of uncertainty and believes that its strong underwriting standards will limit the impact of macroeconomic challenges [34][40] Other Important Information - The company received 14 Coalition Greenwich Awards and was recognized for best customer service in Illinois for the fourth consecutive year [36] - The tangible book value per common share increased to $78.83 compared to $75.39 in the prior quarter [23] Q&A Session Summary Question: How prevalent is uncertainty from borrowers and its impact on growth outlook? - Management acknowledged that borrowers are cautious but remain generally encouraged about the local economy, maintaining their loan growth expectations [45][46] Question: Can you walk us through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented a qualitative overlay due to spikes in credit spreads and equity market factors at the end of the quarter [52][69] Question: Any changes in competitive pricing on new home production? - Management noted that competition remains rational, with slight declines in rates, but they are confident in their market position [58][60] Question: How is new client acquisition in wealth management going? - Management indicated that they are in the process of switching platforms to enhance capabilities, expecting improvement in the wealth management business moving forward [72] Question: Thoughts on M&A and growth through acquisition? - Management expressed confidence in their ability to pursue M&A opportunities and indicated they have the financial resources to do so [76]

Core Insights - Wintrust Financial (WTFC) reported revenue of $643.11 million for Q1 2025, a year-over-year increase of 6.3% and a slight surprise of +0.01% over the Zacks Consensus Estimate of $643.03 million [1] - The EPS for the quarter was $2.69, down from $2.89 a year ago, with a surprise of +6.75% compared to the consensus estimate of $2.52 [1] Financial Performance Metrics - Efficiency Ratio was reported at 57.2%, slightly better than the estimated 57.6% [4] - Net Interest Margin remained stable at 3.5%, matching the analyst estimate [4] - Total earning assets averaged $60.34 billion, slightly below the estimated $60.58 billion [4] - Tier 1 leverage ratio was reported at 9.6%, in line with analyst expectations [4] - Net charge-offs to average loan ratio was 0.1%, better than the estimated 0.2% [4] - Total Non-Interest Income was $116.63 million, below the estimated $127.46 million [4] - Net interest income (FTE) was $529.37 million, exceeding the average estimate of $524.12 million [4] - Net Interest Income was reported at $526.47 million, slightly above the estimated $523.72 million [4] - Service charges on deposit accounts were $19.36 million, surpassing the estimate of $17.60 million [4] - Wealth management income was $34.04 million, below the estimated $39.13 million [4] - Mortgage banking income was $20.53 million, slightly below the estimate of $21.37 million [4] - Operating lease income, net, was reported at $15.29 million, in line with the estimate of $15.28 million [4] Stock Performance - Wintrust shares have returned -9.6% over the past month, compared to the Zacks S&P 500 composite's -5.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - Wintrust Financial (WTFC) reported quarterly earnings of $2.69 per share, exceeding the Zacks Consensus Estimate of $2.52 per share, but down from $2.89 per share a year ago, representing an earnings surprise of 6.75% [1] - The company posted revenues of $643.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.01% and up from $604.77 million year-over-year [2] - Over the last four quarters, Wintrust has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Wintrust shares have declined approximately 17.8% since the beginning of the year, compared to a decline of 10.2% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $2.55 on revenues of $657.5 million, and for the current fiscal year, it is $10.26 on revenues of $2.65 billion [7] Industry Context - The Zacks Industry Rank for Banks - Midwest is currently in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Performance - Wintrust Financial Corporation reported record quarterly net income of $189.0 million, or $2.69 per diluted common share, for Q1 2025, compared to $185.4 million, or $2.63 per diluted common share in Q4 2024[2]. - Net income for Q1 2025 was $189,039,000, a slight increase from $185,362,000 in Q4 2024, showing a growth of 0.9%[55]. - Net income applicable to common shares was $182,048,000, compared to $178,371,000 in the previous quarter, reflecting an increase of 3.8%[55]. - The effective tax rate was 25.30% in Q1 2025, down from 26.76% in Q4 2024, influenced by fluctuations in share-based compensation[41]. - The company declared cash dividends of $0.50 per common share, an 11% increase from Q4 2024[48]. Loan and Deposit Growth - Total loans increased by $653 million, or 6% annualized, while total deposits increased by approximately $1.1 billion, or 8% annualized in Q1 2025[4]. - Total loans reached $48.71 billion, up 6% from Q4 2024 and 13% from Q1 2024[48]. - Total deposits increased to $53.57 billion, an 8% increase from Q4 2024 and a 15% increase from Q1 2024[48]. - The company's loans-to-deposits ratio ended the quarter at 90.9%, indicating a strong liquidity position[4]. - Core loans increased by 4% to $29,108,500,000 compared to December 31, 2024, reflecting a 15% growth year-over-year[56]. Interest Income and Expenses - Net interest income rose to $526.5 million in Q1 2025, up from $525.1 million in Q4 2024, supported by an increase in net interest margin to 3.54%[5]. - Total interest income for Q1 2025 was $886,965,000, a decrease of 2.7% from $913,501,000 in Q4 2024[55]. - Interest expense decreased to $360,491,000 in Q1 2025 from $388,353,000 in Q4 2024, representing a decline of 7.2%[55]. - Net interest income after provision for credit losses was $502,511,000, compared to $508,169,000 in the previous quarter, reflecting a decrease of 1.3%[55]. - The net interest margin for the three months ended March 31, 2025, was 3.54%, an increase from 3.49% in the previous quarter[67]. Non-Interest Income - Non-interest income totaled $116.6 million in Q1 2025, an increase of $3.2 million compared to $113.5 million in Q4 2024[30]. - Total non-interest income for Q1 2025 was $116,634 thousand, a 3% increase compared to $113,451 thousand in Q4 2024, but a 17% decrease from $140,580 thousand in Q1 2024[88]. - Brokerage income fell to $4,757 thousand, down 11% from $5,328 thousand in Q4 2024 and down 14% from $5,556 thousand in Q1 2024[88]. - Trust and asset management income decreased by 12% to $29,285 thousand compared to $33,447 thousand in Q4 2024[88]. - Gains on investment securities improved significantly to $3,196 thousand from a loss of $2,835 thousand in Q4 2024[88]. Credit Quality and Losses - The provision for credit losses totaled $24.0 million in Q1 2025, compared to $17.0 million in Q4 2024, reflecting a conservative approach to credit quality amid macroeconomic uncertainty[5]. - Net charge-offs decreased to $12.6 million, or 11 basis points of average total loans on an annualized basis, down from $15.9 million, or 13 basis points in Q4 2024[27]. - The allowance for credit losses at the end of the period was $448,387 thousand, an increase from $437,060 thousand at the end of the previous quarter[77]. - The annualized net charge-offs as a percentage of total loans was 0.11%, a slight decrease from 0.13% in the previous quarter[77]. - The total allowance for loan losses and unfunded lending-related commitments was $447,941 thousand, compared to $436,603 thousand in the previous quarter[79]. Asset Management and Wealth Management - As of March 31, 2025, the company had approximately $51.1 billion in assets under administration in its wealth management subsidiaries[45]. - Wealth management revenue decreased by $4.7 million in Q1 2025 due to system transitions and lower market valuations[31]. - Wealth management revenue for Q1 2025 totaled $34.0 million, slightly down from Q4 2024[45]. - The company recorded a net gain of approximately $19.3 million from the sale of its Retirement Benefits Advisors division in Q1 2024[47]. - The company is subject to various risks, including fluctuations in stock market conditions that could adversely affect its wealth management and brokerage operations[106]. Operational Efficiency and Expenses - Total non-interest expense for Q1 2025 was $366,090,000, a decrease from $368,539,000 in Q4 2024, reflecting a reduction of 0.4%[55]. - Salaries and employee benefits totaled $211,526 thousand in Q1 2025, a slight decrease of 0.3% compared to $212,133 thousand in Q4 2024[93]. - The efficiency ratio (GAAP) for the quarter was 57.21%, slightly improved from 57.46% in the previous quarter[97]. - Non-interest expenses decreased to $366,090 thousand in Q1 2025 from $368,539 thousand in Q4 2024, a reduction of 0.4%[93]. - The company emphasizes the importance of technology in providing products and services that meet customer demands and improve operational efficiency[103]. Strategic Initiatives and Market Conditions - The Company is focused on growth strategies, including potential acquisitions of banks and specialty finance businesses, as well as plans to establish new branches[104]. - The Company faces competitive pressures in the financial services sector, which may impact pricing and market share for its loan and deposit products[103]. - The Company anticipates potential risks affecting its loan portfolio, including economic conditions, trade policy changes, and defaults, which may require increases in credit loss allowances[102]. - The Company is monitoring the impact of regulatory changes and heightened capital requirements on its operations and financial performance[103]. - The Company acknowledges the potential adverse effects of natural disasters and climate change on its operations[106].

Core Points - Wintrust Financial Corporation reported record quarterly net income of $189.0 million, or $2.69 per diluted common share, for Q1 2025, an increase from $185.4 million, or $2.63 per diluted common share in Q4 2024 [1] - Pre-tax, pre-provision income reached a record $277.0 million, compared to $270.1 million in the previous quarter [1] Financial Performance - Total assets increased by $1.0 billion to $65.87 billion in Q1 2025 compared to Q4 2024 [4][38] - Total loans rose by $653 million, or 6% annualized, driven by growth in commercial and premium finance life insurance loan portfolios [3][5] - Total deposits increased by approximately $1.1 billion, or 8% annualized, resulting in a loans-to-deposits ratio of 90.9% [3][6] - Net interest income increased to $526.5 million in Q1 2025, up from $525.1 million in Q4 2024, supported by improved net interest margin [5][8] - Net interest margin improved by five basis points to 3.54% in Q1 2025 compared to Q4 2024 [9][35] Credit Quality - The allowance for credit losses totaled $448.4 million as of March 31, 2025, an increase from $437.1 million at the end of Q4 2024 [11][39] - Net charge-offs decreased to $12.6 million, or 11 basis points of average total loans, down from $15.9 million, or 13 basis points in Q4 2024 [13][39] - Non-performing assets remained stable at $195.0 million, comprising 0.30% of total assets as of March 31, 2025 [15][39] Non-Interest Income and Expenses - Non-interest income totaled $116.6 million in Q1 2025, an increase of $3.2 million from $113.5 million in Q4 2024 [16] - Non-interest expenses decreased to $366.1 million in Q1 2025, down from $368.5 million in Q4 2024 [21] Business Segments - Community banking saw increases in commercial, commercial real estate, and residential real estate loan portfolios in Q1 2025 [28] - Wealth management revenue totaled $34.0 million in Q1 2025, slightly down from the previous quarter [32] - Specialty finance reported originations of $4.8 billion in insurance premium financing receivables during Q1 2025 [30]

Core Insights - Wintrust Financial (WTFC) is expected to report quarterly earnings of $2.52 per share, a decline of 12.8% year-over-year, with revenues projected at $643.03 million, reflecting a 6.3% increase compared to the previous year [1] Earnings Projections - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts have not revised their initial projections [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Financial Metrics - Analysts estimate an 'Efficiency Ratio' of 57.6%, up from 55.2% a year ago [5] - The 'Net Interest Margin' is projected to be 3.5%, slightly down from 3.6% year-over-year [5] - 'Average balance - Total earning assets' is expected to reach $60.58 billion, compared to $52.27 billion last year [5] - The 'Tier 1 leverage ratio' is forecasted at 9.6%, up from 9.5% in the same quarter last year [6] - 'Total Non-Interest Income' is expected to be $127.46 million, down from $140.58 million a year ago [6] Income Estimates - 'Net interest income - FTE' is projected at $524.12 million, compared to $467 million last year [7] - 'Net Interest Income' is expected to reach $523.72 million, up from $464.19 million in the same quarter last year [7] - 'Service charges on deposit accounts' are estimated at $17.60 million, compared to $14.81 million a year ago [7] Additional Revenue Streams - 'Wealth management' is projected to reach $39.13 million, up from $34.82 million last year [8] - 'Mortgage banking' is expected to be $21.37 million, down from $27.66 million a year ago [8] - 'Operating lease income, net' is projected at $15.28 million, compared to $14.11 million last year [8] - 'Fees from covered call and put options' are expected to be $2.00 million, down from $4.85 million a year ago [9] Stock Performance - Over the past month, Wintrust shares have declined by 10.2%, while the Zacks S&P 500 composite has decreased by 3.9% [9] - Wintrust holds a Zacks Rank 2 (Buy), indicating a potential to outperform the overall market in the upcoming period [10]

Company Overview - Wintrust Financial (WTFC) shares increased by 9.4% to close at $104.13, following a period of 12.2% loss over the past four weeks, indicating a significant recovery in investor sentiment [1][2] - The bank holding company is expected to report quarterly earnings of $2.52 per share, reflecting a year-over-year decline of 12.8%, while revenues are projected to be $643.03 million, an increase of 6.3% from the previous year [3] Market Reaction - The surge in Wintrust Financial's stock price was influenced by President Trump's announcement of a 90-day pause on reciprocal tariffs for most trading partners, which alleviated trade war concerns and improved the economic outlook [2] - The consensus EPS estimate for Wintrust has remained stable over the last 30 days, suggesting that the recent stock price increase may not be sustainable without positive earnings estimate revisions [4] Industry Context - Wintrust is part of the Zacks Banks - Midwest industry, where First Business Financial Services (FBIZ) also operates, closing 5.8% higher at $47.30, despite a -4.5% return over the past month [4] - First Business Financial Services has seen a 1.5% increase in its consensus EPS estimate to $1.29, representing a 24% increase from the previous year, and also holds a Zacks Rank of 2 (Buy) [5]

Core Points - Wintrust Financial Corporation announced the conclusion of Edward J. Wehmer and Scott K. Heitmann's long-time service on the Board of Directors at the Annual Meeting of Shareholders on May 22, 2025 [1][2] - Wehmer will be appointed Chairman Emeritus and continues to serve as Founder and Senior Advisor, while Heitmann has been a valuable member since 2008 [2][3] - Wintrust has achieved significant growth, becoming a $65 billion financial services enterprise, and is optimistic about its future [2][3] Company Overview - Wintrust is a financial holding company with approximately $64.9 billion in assets, traded on the NASDAQ Global Select Market [5] - The company operates over 200 retail banking locations through 16 community bank subsidiaries across various regions, including greater Chicago and southern Wisconsin [5] - Wintrust offers a range of services, including residential mortgage origination, wealth management, and commercial insurance premium financing [5]